Do I have to report sale of units of a publicly traded oil partnership as ordinary income if the k-1 lists the ordinary gain amount ? Have about $70k in ordinary gain and I have a strong feeling that the client has no idea of this taxable event. He does have enough capital loss carryforward to absorb this gain. The LP's included the IRC section 751 statement but it does state "if" you sold the units and characterized the gain as ordinary income, you must attach the statement. Would love to list as capital gain if possible. Haven't recalled an instance where there was gain in these unit sales rather than a loss.
Thanks for your input !
Thanks for your input !